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Stifel Downgrades Allied Gold Corporation (AAUC) to Hold, Sets C$44 Price Target
Yahoo Finance· 2026-02-16 11:59
Group 1 - Allied Gold Corporation (NYSE:AAUC) has agreed to be acquired by Zijin Gold International in a friendly all-cash transaction valuing the company's equity at approximately C$5.5 billion, with a C$44 per share offer representing a 27% premium to its 30-day volume-weighted average price on the TSX [3] - The transaction is structured as a plan of arrangement under Ontario law and is expected to close by late April 2026, with no financing condition due to Zijin's existing liquidity [3] - The acquisition provides shareholders with immediate value at a meaningful premium, reducing execution and jurisdictional risks associated with Allied's African assets [4] Group 2 - The all-cash structure of the deal reduces market uncertainty and provides liquidity to shareholders, while Zijin's strong balance sheet and operational expertise enhance confidence in the completion of the transaction [4] - The current stock price of Allied Gold is trading near the offer price, making it an attractive merger-arbitrage opportunity for investors seeking defined near-term returns [4] - Allied Gold Corporation, founded in 2011 and headquartered in Toronto, operates gold mines in Mali, Côte d'Ivoire, and Ethiopia [5]